Note:
If Visual Studio won't allow you to uninstall the extension (the
Uninstall button is disabled), then you likely need to restart Visual
Studio using "Run as Administrator."

Features

Support opening readme.txt file after installation

Show prerelease packages in the Manage NuGet packages dialog

Show Package Restore button when package files are missing

Add solution-level packages.config file

In previous versions of NuGet, each project has a packages.config
file which keeps track of what NuGet packages are installed in that
project. However, there was no similar file at the solution level to
keep track of solution-level packages. As a result, there was no way to
restore solution-level packages. This feature is now implemented in
NuGet 1.7. The solution-level packages.config file is placed under the .nuget folder under solution root and will store only solution-level packages.

Remove New-Package command

Due
to low usage, the New-Package command has been removed. Developers are
recommended to use nuget.exe or the handy NuGet Package Explorer to
create packages.

Bug Fixes

NuGet 1.7 has fixed many bugs around the Package Restore workflow and Network/Source Control scenarios. ...

I
ran into the Known Issues above myself. If you're having problems
updating (like the uninstall is disabled, errors, etc), check out those
notes and suggestions.

I think my favorite item in this release is the Solution Level feature...